An advertised monthly lending rate of 9% is about 11% per year. this difference between an advertised rate and the annualized rate is based on finer tvm details that may be overlooked by borrowers. discuss how you may have used tvm in a recent investment or loan decision and explain the tvm involved in your transaction.

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?